Press Release

JCR-VIS Reaffirms Entity Ratings of First Credit and Investment Bank Limited
 

Karachi, December 29, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of First Credit and Investment Bank Limited (FCIBL) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 30, 2016.

The ratings of FCIBL take into account its association with strong primary sponsors, namely, National Bank of Pakistan Limited (NBP) and Water and Power Development Authority (WAPDA), with each having a shareholding of 30.8%.

The major proportion, almost two third, of asset base consisted of short-term placements with microfinance banks and cash and bank balances at end-1QFY18. Given sound credentials of counterparties, credit risk is considered manageable. Moreover, given the size of the listed equity portfolio in relation to company’s own equity and most fixed income exposures linked to floating rates, market risk emanating from the investment portfolio is considered limited.

While major portion of balance sheet continues to be funded through equity; gearing, though remained low, increased modestly by end-1QFY18. Liquidity profile of the company draws support from sizeable liquid asset in relation to outstanding obligations; liquid assets as a proportion of outstanding borrowings increased further by end-FY17.

Currently, the bank is slightly short of the regulatory minimum equity requirement (MER) for deposit taking investment finance companies. The regulator has granted extension in meeting MER till December 31, 2017.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13 or fax to 021-35311872.


Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Non-Bank Financial Companies (October 2017)
http://jcrvis.com.pk/docs/NBFCs%20201710.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2017 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited